The following costs are attributed to the Quilt Company:

Purchase of raw materials (all direct) $287,300

Direct labour cost $129,800

Manufacturing overhead costs $166,260

Inventories:

Beginning raw materials $10,000

Ending raw materials $2,000

Beginning work in process $20,000

Ending work in process $2,800

Beginning finished goods $20,000

Ending finished goods $2,700

Quilt Company used a 125% predetermined overhead rate based on direct labour cost.

Required:

7. Calculate the cost of goods manufactured.

8. What was the cost of goods sold before adjusting for any under or over applied overhead?

9. By how much was manufacturing overhead cost under or over applied?

10. Would the summary journal entry to close any under or over applied manufacturing overhead cost be a debit or credit to COGS?